AESSEAL secures turnover and profit growth as it benefits from the weakness of the pound
Engineering firm AESSEAL has reported a 12.5% rise in sales in 2017, as it benefited from the weakness of the pound.
The Rotherham-based company designs and makes seals for a wide range of global industries including oil and gas, food, water, mining and pharmaceuticals.
Group turnover rose 12.5%to £170.6m in the year to December 31 2017, with organic sales growth of 6.75% when adjusted for acquisitions and currency fluctuations. Pre-tax profits rose to £23.9m during the period, up from £19.8m.
Group net assets rose to £103.5m, a rise of 14.2% from 2016, and the firm held a positive cash balance of £17.4m at year end, after increasing capital expenditure – which included investment of £6.8m in additional axis machining capacity.
Founder and managing director Chris Rea said: “Despite a climate of continuing political and economic uncertainty, the AES group has delivered a strong result for 2017 and is confident of progressing positively this year and beyond.
“The investment in 2017 is not only to service increased demand but also to support the group’s stride to take advantage of digitalisation and the Internet of Things. Our confidence for the future is built on the excellence of our product and service offering and the business model and value proposition of the group, which is unique in the industry sector.”
AESSEAL has recorded more than three decades of near constant growth under Rea’s leadership and continues to innovate in order to remain ahead of competitors and deliver industry leading customer service levels.
Mr Rea added: “Being located in South Yorkshire plays a key role in the success of the business. The steel industry heritage in the area means we have a skilled labour force.
“After 30 years of continued product development we believe we are in a very strong position – with a range of differentiated and enhanced patented technology for almost all Wet and Dry Gas Seal applications – and that we can secure as large a percentage of global applications as any other global mechanical seal supplier. Going forward our development will focus on emerging technologies and connecting the group’s consultancy and reliability business digitally to its physical product range in order to offer the best possible service to customers.”
The company received the International Trade award at TheBusinessDesk.com’s Yorkshire Business Masters 2018, held in April. The firm has 230 locations worldwide, supplying customers in 104 countries, and employs a global network of sales engineers and technical support specialists. It employs 1,675 people across the globe, including 370 in Yorkshire.
